Pursuant to Elections Code Section 9005, we have
reviewed the proposed statutory initiative related to political
contributions from corporations (A.G. File No. 09‑0088).

Background

Under current law, corporations with stockholders
are authorized to make political contributions. A corporation determines
on its own who can authorize such contributions (for instance, an
executive officer, board of directors, or stockholders).

Proposal

This measure restricts corporations with
stockholders from making political contributions (for candidates, ballot
measures, and issue advocacy) unless the stockholders authorize the
contributions through a written resolution. The resolution would have to
list the recipients and amounts of any authorized contributions.

Fiscal Effect

The state's Fair Political Practices Commission
could experience increased costs to enforce the measure's provisions.
These costs would potentially total a few hundred thousand dollars
annually. Such costs could be partially offset by fines collected from
corporations not abiding by the measure's provisions.

Fiscal Summary. This measure would
have the following major fiscal impact: